Scoria Hires Ex-SAC Manager Ted Orenstein for Industrials

Ted Orenstein, who was one of billionaire Steven A. Cohen’s top money managers, is joining Scoria Capital Partners to lead its investments in industrial stocks.

Orenstein worked for Point72 Asset Management and its predecessor SAC Capital Advisors for the last 12 years, according to a Scoria investor letter obtained by Bloomberg News. There, Orenstein ran a portfolio that ranged from $500 million to more than $1 billion, including leverage. Orenstein, who left Point72 earlier this year, will start on Jan. 5, according to the letter dated today.

Larry Sapanski founded Greenwich, Connecticut-based Scoria in October 2013, after his previous firm, Diamondback Capital Management, shut in 2012. The stock fund started taking outside capital at the beginning of this year and currently manages $235 million, Sapanski wrote.

Steve Bruce, a spokesman for the firm at ASC Advisors, declined to comment on the hire or on performance.

After Orenstein joins, Scoria will have six portfolio managers, covering a range of industries. In addition to running the utilities, technology, special situations and energy sectors, Sapanski also runs the best ideas portfolio that puts more money into the most promising trades from the other sector heads.

Fund Gains

Scoria has returned 7.4 percent through November, according to a person familiar with the firm who asked not to be named because the information is private. The average long/short equity hedge fund rose 1.7 percent this year, according to data compiled by Bloomberg.

Stamford, Connecticut-based Diamondback, founded by Sapanski and Richard Schimel in 2005, closed amid client withdrawals after three of its employees were charged with insider trading as part of the government’s multiyear probe.

The office of Manhattan U.S. Attorney Preet Bharara agreed not to prosecute Diamondback for the actions of the employees and said the co-founders weren’t aware of their misconduct. The conviction of one of the employees, Todd Newman, was overturned earlier this month.

Cohen has lost trading and business employees after converting his former hedge-fund firm into a family office earlier this year. The former SAC Capital agreed in 2013 to pay a record $1.8 billion and plead guilty to securities fraud to settle allegations of insider trading. As part of the settlement, Cohen, 58, agreed to close SAC and return client money.

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